Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?

Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts to $48,600 and the government is currently running a budget deficit of $18,600. Compute the level of taxes, public saving, government spending, national saving and investment. b. In the era of Covid-19 pandemic, producers are worried about the returns of capital and decide to reduce their investments, use a well-labelled diagram to illustrate and analyze the impacts on the equilibrium interest rate and quantity of loanable funds?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 8PA

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